During the Summer of 2022, gas prices rose well over $5.00 per gallon.  In response, President Biden called for a 3-month Federal Gas Tax Holiday, which would remove the $0.18 per gallon federal tax on gasoline.  Under what circumstances would you expect consumers to reap the majority of the benefits from the removal of the gasoline tax?  Under what circumstances would you expect gasoline retailers to reap the majority of the benefits from the removal of the gasoline tax?

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Q: Under which circumstances does the tax burden fall entirely on consumers?

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